02658cas a2200313 a 4500 AALejournalIMF023027 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400217203 1018-5941 BD-DhAAL BD-DhAAL Akyapi, Berkay. Estimating Macro-Fiscal Effects of Climate Shocks From Billions of Geospatial Weather Observations / Berkay Akyapi, Matthieu Bellon, Emanuele Massetti. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (73 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students A growing literature estimates the macroeconomic effect of weather using variations in annual country-level averages of temperature and precipitation. However, averages may not reveal the effects of extreme events that occur at a higher time frequency or higher spatial resolution. To address this issue, we rely on global daily weather measurements with a 30-km spatial resolution from 1979 to 2019 and construct 164 weather variables and their lags. We select a parsimonious subset of relevant weather variables using an algorithm based on the Least Absolute Shrinkage and Selection Operator. We also expand the literature by analyzing weather impacts on government revenue, expenditure, and debt, in addition to GDP per capita. We find that an increase in the occurrence of high temperatures and droughts reduce GDP, whereas more frequent mild temperatures have a positive impact. The share of GDP variations that is explained by weather as captured by the handful of our selected variables is much higher than what was previously implied by using annual temperature and precipitation averages. We also find evidence of counter-cyclical fiscal policies that mitigate adverse weather shocks, especially excessive or unusually low precipitation episodes. Mode of access: Internet Environment and Growth imf Existence and Stability Conditions of Equilibrium imf Large Data Sets imf Multiple or Simultaneous Equation Models imf Bellon, Matthieu. Massetti, Emanuele. IMF Working Papers; Working Paper ; No. 2022/156 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=156 IMF e-Library